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Capitalization of Interest in February 2015, Quorum Corp

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Capitalization of interest In February 2015, Quorum Corp.began the construction of a 10 story building.The construction is expected to be completed by January 2016. Capitalization of interest In February 2015, Quorum Corp.began the construction of a 10 story building.The construction is expected to be completed by January 2016.   Instructions  a)Calculate the weighted-average accumulated expenditures for the year ended December 31, 2015. b)Calculate the weighted-average capitalization rate on Quorum's general-purpose debt for the year ended December 31, 2015. c)Calculate the avoidable borrowing costs. d)Calculate the amount of Quorum's borrowing costs that should be capitalized. Instructions
a)Calculate the weighted-average accumulated expenditures for the year ended December
31, 2015.
b)Calculate the weighted-average capitalization rate on Quorum's general-purpose debt for
the year ended December 31, 2015.
c)Calculate the avoidable borrowing costs.
d)Calculate the amount of Quorum's borrowing costs that should be capitalized.

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Definitions:

Latter Part

The final section or segment of a particular period, document, discussion, or series of events.

Legitimate

being in accordance with established legal rules and standards.

Fundamental Reformulation

A comprehensive and profound change or restructuring of a concept, theory, or system.

Results

The outcomes or consequences of an action or process.

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